What Tax Preparers Really Charge

With tax season just around the corner, the National Society of Accountants has surveyed its members to determine average tax-return preparation fees by form and by region. The group has 11,000 members, most of whom are sole practitioners or work at smaller firms. They have various credentials, including CPA, IRS enrolled agent and accredited tax preparer.

According to the survey, the average cost to prepare an itemized Form 1040 with a Schedule A (for itemized deductions) and a state tax return is $246. The average rate for a return without itemized deductions is lower: $143.

“I think most people would say this is worth the money,” says NSA official John Ams. “Just reading the return instructions can take hours.”

The survey also reported the average fees for preparing other IRS forms, including the following:

$205 for a Form 1040 Schedule C (business)

$556 for a Form 1065 (partnership)

$759 for a Form 1120 (corporation)

$717 for a Form 1120S (S corporation)

$468 for a Form 1041 (fiduciary)

$628 for a Form 990 (tax exempt)

$59 for a Form 940 (Federal unemployment)

$134 for Schedule D (gains and losses)

$155 for Schedule E (rental)

$185 for Schedule F (farm)

The survey also found that tax-preparation fees varied by region, firm size, population, and an area’s economic strength. Here is the average fee for an itemized Form 1040 with Schedule A and a state tax return in different U.S. census districts:

New England (CT, ME, MA, NH, RI, VT) – $237

Middle Atlantic (NJ, NY, PA) – $258

South Atlantic (DE, DC, FL, GA, MD, NC, SC, VA, WV) – $253

East South Central (AL, KY, MS, TN) – $279

West South Central (AR, LA, OK, TX) – $226

East North Central (IL, IN, MI, OH, WI) – $225

West North Central (IA, KS, MN, MO, NE, ND, SD) – $196

Mountain (AZ, CO, ID, MT, NV, NM, UT, WY) – $233

Pacific (AK, CA, HI, OR, WA) – $288

All fees assume that a taxpayer has gathered and organized necessary information and provides it to the preparer on time. The average fee to file an extension is $41, though that figure rises to $80 if information isn’t submitted at least 15 days ahead of a filing deadline.

A spokesman for the group adds that nearly all its members offer free consultations.